1. Cognex (CGNX) 06/11/14 Wealth Creations Research

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3. Content The Business 1. Core Business 2. Business Risk 3. Growth Drivers The Management 1. Board of Director Profile 2. Remuneration 3. Shareholders Statistic The Valuation 1. Numbers 2. Valuation

4. Core Businesses Cognex Corporation is the world’s leading provider of vision systems, vision software, vision sensors and surface inspection systems used in manufacturing automation. Cognex is also a leader in industrial ID readers. Cognex vision helps companies improve product quality, eliminate production errors, lower manufacturing costs, and exceed consumer expectations for high quality products at an affordable price.

5. Business Risk A higher mix of lower-margin Product ID sales significantly hurts profitability. Competitors dominate the market for 3-D machine vision, while the logistics customers stick with "good enough" laser scanners. Accounts receivables growth once again begins to outpace revenue growth, indicating more generous credit terms or difficulty in collecting payment.

6. Growth Drivers International growth accelerates as European and Asian customers adopt more Product ID and Logistics solutions Life sciences applications become an increasingly significant growth area for the company, making more Cognex systems part of the approved specifications in regulated devices. Cognex finds good acquisition targets, whether among current competitors or in adjacent markets.

7. Executive Director Profile Name: Robert Willet Position: Chief Executive Officer (2011- Present) Past Roles: Chief Operating Officer (Cognex Corp) Education: Bachelor of Arts Degree from Brown University and M.B.A from Yale University

8. Executive Director Profile Name: Robert Shillman Position: Chief Culture Officer (2011- Present) Past Roles: Chief Executive Officer (Cognex Corp) Education: B.S.E.E. from Northeastern University, as well as an M.S.E.E. and a Ph.D. from the Massachusetts Institute of Technology.

9. Executive Director Profile Name: Richard Morin Position: Chief Financial Officer (1999- Present) Past Roles: Chief Financial Officer (C & K Components) Education: BA in economics and accounting from The College of the Holy Cross, and is a Certified Public Accountant

10. Remuneration (FY13) Key Executive Salary % of Profits $2.7M3.6% NameFixed PayBonusOthersTotal Robert Willet$0.4MNil$1.2M$1.6M Richard Morin$0.3MNil$0.8M$1.1M Robert Shillman $0.0MNil$0M

11. Shareholders Statistic NamePercentageRemarks Robert Willet0% Richard Morin0.002% Robert Shillman4.6%

12. Profit & Loss Compound growth rates of the revenue is 19% as for the expenses is growing about 9% which is a good thing for this company

13. Balance Sheet

14. Profitability The margins are good for most of the years except for FY09 where the lose some money

15. Activity Ratio Only concern is that the receivables (Days) is very high don’t know whether the company can collec the debt when times of crisis

16. Valuation Company Rating: A Price Target: $18.79 - $19.69 Recommendation: Sell Discounted Earnings Model Growth Rate7%Risk Free Rate2% Yr 12345678910 Earnings 1.5271.6341.7481.8702.0012.1412.2912.4522.6232.807 Discount Rate 0.9770.9540.9320.9110.8900.8690.8490.8300.8110.792 Discounted Earnings 1.4921.5591.6301.7041.7811.8621.9462.0342.1272.223 Cumulative Earnings 1.4923.0514.6816.3858.16610.02811.97414.00816.13518.358